Automotive plastics companies specialize in providing advanced plastic solutions for the automotive industry. These materials are crucial for reducing vehicle weight, enhancing fuel efficiency, and improving design flexibility.
Automotive Plastics Market
November 2023- The investment firm Northern Gritstone, on November 16thannounced a £2 million Series A investment into the bioplastics developer Floreon, a spin-out technology from the University of Sheffield. Floreon has developed a range of bioplastics made from plants, including corn and sugarcane, with performance comparable to Acrylonitrile Butadiene Styrene (ABS), the common plastic polymer widely used in automotive, electronics, and electrical appliances and toys. With over 99 percent of the world's plastics produced from chemicals sourced from fossil fuels, bioplastics offer a sustainable alternative. The global bioplastics and biopolymers market is projected to reach USD27.3 billion by 2027. Floreon's materials have achieved the performance standards for high-value applications and mass production. By using plants to take carbon dioxide directly from the air and convert it into sugars that can be used as feedstock for the material, Floreon's bioplastics production can reduce carbon emissions by up to 7x compared to traditional oil-based plastics.
The company's innovations include:
Therma-Tech is the world's first bioplastic to achieve UL94V-0 flammability certification, allowing its use in home electronics, automotive, and construction applications.
Dura-Tech is an ideal alternative to ABS when fire resistance isn't needed.
Bio-Tech is an industrially compostable version ideal for food packaging and agricultural applications.
Northern Gritstone's investment will allow Floreon to expand its team and bring its products to market.
November 2023- Cooper Standard has been recognized as a 2023 Society of Plastics Engineers (SPE) Automotive Innovation Award finalist for its FlushSeal™ System found on several NIO models. The innovation, which is recognized in the Body Exterior category, is one of 28 technologies named a finalist in the annual program that honors the best companies in automotive plastics. Cooper Standard's FlushSeal™ System offers a patented solution to enable flush glass – a growing trend associated with the shift to electric vehicles – while maintaining the performance of a traditional door and the differentiated aesthetics and styling of a frameless door. The key enablers of this system are the rails and sliders, which are both comprised of plastic-based materials. The intimate cooperation of these two components is the critical design feature that makes the Cooper Standard system superior to other systems on the market by allowing flexibility but also robust glass guidance.
Key Companies in the Automotive Plastics market include
The  Automotive Plastics Market Size was valued at USD 29.5 Billion in 2022. The Automotive Plastics industry is projected to grow from USD 30 Billion in 2023 to USD 42 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.4% during the forecast period (2023 - 2030). Automotive plastics are the materials used in the manufacturing of vehicle components. These plastics provide similar properties as the metal in automobiles. The few properties of these plastics are abrasion resistance, toughness, stiffness, and flame retardancy. The versatility and flexibility are the superior characteristics of plastics which is boosting technological advancements to enhance automobile designs. For an average car, polymers have around 10% of the weight. Mainly to reduce the weight of vehicles, polymers are used in automobiles which results in accelerating fuel efficiency and reducing carbon emissions.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Improved vehicle design capabilities, recovery in the automotive sector, and a rising focus on vehicle weight reduction and emission control are the major factors driving the market growth of automotive plastics. Rising demand for fuel-efficient automobiles and surging demand for passengers and commercial vehicles are boosting the automotive plastics market. Increasing adoption of lightweight materials owing to the stringent emission and fuel economy regulations is fostering market growth. By using plastics in automobiles, the weight of the vehicles is reduced as well as increased fuel efficiency and also aids in the reduction of greenhouse gas emissions. Moreover rising automotive plastic repairs is also fostering the market growth. Growing demand for electric vehicles is escalating the market growth.Â
Additionally, Increasing the technological innovations in the automotive plastics market like reducing the vehicle’s weight, and boosting the overall performance is pushing the vendors to go for PMMA plastics. A surge in the demand for long fiber reinforced thermoplastics (LFRT) and lightweight reinforced thermoplastic components in the automotive industry propels the market growth in the coming years. It is expected that the rise in demand for bioplastics in various automotive applications is increasing the automotive plastics market growth as they work on renewable sources of energy, are lightweight, and have higher efficiency than conventional vehicles.
The  Automotive Plastics market segmentation, based on Type, includes polypropylene, polyurethane (PU), polyvinyl chloride (PVC), Acrylonitrile-Butadiene-styrene (ABS), polyamide, polycarbonate, polymethyl methacrylate, and others. Among them, polypropylene is holding the largest automotive plastics market share due to massive demand in end-user industries like packaging, electrical & electronics, consumer products, automotive, and construction.Â
Based on Application, the  Automotive Plastics market segmentation includes interior, exterior, under the hood, powertrain, drivetrain, instruments panel, electronics, and others. As growing plastics usage in light displays, steering wheels, rear package shelves, ABS composites, and fascia systems, interior furnishing applications are expected to be the fastest-growing segment in the plastics market.
Figure 2: Â Automotive Plastics Market, by Application, 2023 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific dominated the market and accounted for a revenue share of over 45.0% in 2021. Shifting production bases from developed regions to emerging economies of Asia Pacific, particularly in China, India, Thailand, Vietnam, and Indonesia, is expected to boost the market growth. Expanding manufacturing base and increasing investments in advanced technologies for vehicular production are expected to bring about a new era of automobiles, positively influencing the market for automotive plastics. Consumers in Europe and APAC are highly conscious of fuel efficiency. This has also driven the demand for sustainable plastics. For instance, in November 2021, the Indian Oil Corporation (IOC) and two other public sector oil companies declared plans to build 22,000 charging stations for electric vehicles over the next three to five years.
Figure 3: Â AUTOMOTIVE PLASTICS MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe was the second-largest market for automotive plastics in 2021. Automobile manufacturers in Europe are using high-performance plastics as these materials are energy-efficient and help in the weight reduction of the vehicle. Strict emission standards in the region have forced automakers in European countries to shift from diesel engines to electrified motors. This is also expected to augment product demand over the forecast period.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Automotive Plastics market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive Plastics industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Automotive Plastics. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Automotive Plastics industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the  Automotive Plastics industry to benefit customers and expand the market sector. The Low-Profile Additives market has recently given medicine some of the most important advantages. Major Automotive Plastics market players, including Teijin Ltd (Japan), AkzoNobel N.V (Netherland), Evonik Industries (Germany), Johnson Controls (U.S.), and others, are attempting to increase market demand by funding R&D initiatives.
Teijin is a company that engages in the materials, healthcare, and IT businesses. It develops and manufactures aramid products, carbon fibers, film sheets, resins, flame retardants, additives, composite molding materials, etc. In addition, the company offers pharmaceutical products, home healthcare devices, orthopedic implantable devices, and functional food ingredients, as well as inventory management systems.
Also, AkzoNobel is a company that manufactures paints and coatings. It offers products such as decorative paints, automotive, specialty, marine, protective, yacht, industrial, and powder coatings. The company operates a number of brands, such as AkzoNobel, Alabastine, Alba, Apla, Cetol, Coral, Dulux, Flexa, Glitsa, Herbol, and Lesonal.
January 2022, Braskem will be enhancing its feedstock optionality for supplying propylene to its own polypropylene manufacturing unit based in Marcus Hook, Pa. This will enable the company to leverage arbitrage opportunities with respect to competitive propylene overseas. Braskem-owned Marcus Hook unit manufactures 415 kilotons of polypropylene every year, which have applications in automotive, medical, appliance, and food packaging. Braskem’s alliance with Repauno offers the former higher flexibility as well as optionality for the import of propylene especially when prices are extremely competitive.August 2023, LG Chem announced the development of a new lightweight composite material for automotive applications. The new material is said to be made from recycled plastics and is said to offer a weight savings of up to 50% compared to traditional materials.
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